Senate approves bill to allow sale/lease of surplus interstate air rights to support Rose Quarter reconnection

The Senate passed Senate Bill 11 82, which authorizes the state Department of Transportation to sell or lease certain surplus state‑owned property and air rights created by the Interstate 5 Rose Quarter project. Proceeds are to be returned to the state highway fund.

Senator Frederick, who presented the measure, framed the bill as addressing historic disconnection caused by freeway construction in Portland’s Albina neighborhood. “This plan reconnects my neighborhood,” he said, explaining the Albina Vision Trust’s plan for reclamation of air rights and development above the freeway to restore community institutions and commercial life.

The bill directs the Department of Transportation to secure an independent appraisal of fair‑market value for any sale or lease of state interests in the affected properties and to make valuation information available. Floor remarks cited the plan’s potential to create up to four acres of developable air rights and said proceeds would go back to the highway trust fund.

Supporters emphasized restorative benefits for North/Northeast Portland and noted city, federal, and private stakeholders had acknowledged the project’s potential. There was little floor opposition recorded; the Senate declared the bill passed after a roll call.

Next steps: The bill will be enrolled and transmitted to the governor. If signed, implementation will require DOT valuation, statutory disposition processes and coordination with Albina Vision Trust and local stakeholders on design and transfer of air rights.